Amber Enterprises up 4% as Kotak fund buys share in companyShares of Amber Enterprises India rose nearly 4% today after Kotak Fund-India Midcap bought 253,290 shares of the company at Rs1, 149.15 in a bulk deal on the NSE.Shares of Amber Enterprises got listed on Tuesday at a premium of 37% to their issue price of Rs859.Amber Enterprises India Ltd is currently trading at Rs 1285, up by Rs 47.75 or 3.86% from its previous closing of Rs 1237.25 on the BSE.The scrip opened at Rs1, 232.5 and has touched a high and low of Rs1, 298.3 and Rs1, 230, respectively. The current market cap of the company is Rs3, 890.72cr.Workers at Bajaj Auto plants go on indefinite hunger strike, stock opens weakWorkers at Bajaj Auto Limited’s (BJAUT) plants in Akurdi and Chakan have gone on an indefinite hunger strike from January 29, 2018. The workers’ Union involved in this strike is Vishwa Kalyan Kamgar Sanghatana. BJAUT reported this to stock exchanges on January 30, 2018.The three reason for workers going on hunger strike are i) pending issue of eight workmen dismissed from services for various acts of misconduct in 2013-14, ii) dismissal of six workmen who did not report to place of transfer/deputation despite court orders and iii) delay in conclusion of wage review process due with effect from April 1, 2016. The matter is pending before the Industrial Court, Pune and High Court of Bombay.BEL approves buy-back of 2.04cr equity shares at Rs182.50 per shareThe board of directors of Bharat Electronics Ltd (BEL), in their meeting held on January 30, 2018, approved the proposal to buy-back the equity shares of the company. The buy-back would be of ~2.04cr equity shares (representing 0.83% of total equity shares) at a price of Rs182.50 per share (~7% premium to the last closing price) payable in cash.The buy-back size amounts to Rs372.26cr, representing 5% of the aggregate of the fully paid-up equity share capital and free reserves of the company. The promoter of the company also intends to participate in the proposed buyback. The buyback is subject to approval from the shareholders and all other applicable statutes. The board has fixed February 9, 2018, as the record date for the buy-back.NTPC establishes $6bn MTN Programme on India’s International ExchangeIndia’s largest power producer NTPC has listed its $6bn (about Rs40, 000cr) MTN programme (debt instrument) on India International Exchange at IFSC, GIFT City (India INX). While doing so, NTPC became India’s first quasi-sovereign company to list at India INX.The Listing was done on January 24, 2018, on the Global Securities Market of India INX; India’s first international exchange.The listing will help NTPC raise funds at lower costs from international investors and also allow foreign investors to access good quality Indian debt paper.SBI hikes bulk deposit rates by 50-140 basis pointsSBI announced that the leading banker is going to increase bulk deposit rates by 50-140 bps effective today. Following this announcement, shares of SBI reached a high of Rs318.8 in the morning trade, gaining ~2%. However, the stock was unable to hold on to the gains as the day progressed.The stock ended at Rs312.85, up by Rs1.75 or 0.56% from its previous closing of Rs311.1 on the BSE. The scrip opened at Rs311.05 and has touched a high and low of Rs318.75 and Rs310.8 respectively.The bank’s FY17 consolidated loan book stood at Rs.19.5 lakh cr. Its consolidated GNPA & NNPA stood at 9.1% & 5.2% as of FY17.

Dr. Reddy's slumps 3% on unimpressive Oct-Dec earningsShares of Dr. Reddy's Laboratories slumped nearly 3% as investors were unimpressed by the company's earnings for the December quarter.The drug maker reported a consolidated net profit of Rs290cr, sharply below analysts' estimate of Rs350cr. Continued rise in pricing pressure and lack of new product launches in the US during the quarter weighed on the company's operating margin, which contracted 250bps on year to 21.2%.Biocon slumps as Oct-Dec consol PAT below estimateShares of Biocon slumped over 4% after the company reported a 46.4% on-year fall in consolidated net profit for the December quarter at Rs91.9cr, below analysts' estimate.Revenue from operations for the quarter was at Rs1058cr, against Rs1044cr a year ago. Sales in Oct-Dec were in line with estimates.NCC’s Board to meet on January 30 to approve QIP issue priceNCC stock is up 3.3% on the back of news that the Board of Directors of NCC will meet on January 30, 2018, to consider and approve the issue price, including a discount for the equity shares to be allotted to the qualified institutional buyers in the issue.NCC Ltd is one of the largest Indian construction companies in terms of revenue. The company’s order book was worth Rs28,109cr as of October 2017. The revenues of the company were impacted by GST implementation. We expect the company to report revenue CAGR of 3% over FY17-19E. We estimate the company’s margin to rise by 70bps on the back of cost optimization and timely execution of projects. We expect the company to report PAT CAGR of 3% over FY17-19E.Glenmark reports encouraging clinical trial data on GBR 1302Glenmark Pharma has reported positive clinical trial data on its phase 1 molecule GBR 1302. GBR 1302 is a potential drug candidate for Breast Cancer and Gastric Cancer.The company has indicated that the preliminary data for GBR 1302 tells about the spikes in peripheral blood cytokines and a drop in T cell levels suggesting the potential for T cell activation.The company has said that it is encouraged by these initial findings and look forward to continuing the studies. GBR 1302 is Glenmark’s lead immuno-oncology agent based on the proprietary BEAT® bispecific antibody engineering platform.Dr. Reddy’s Bachupally plant completes successful re-inspection by German regulatorDr. Reddy’s has announced that the German drug regulator has carried out re-inspection of its Bachupally formulations plant (unit 2). The company has successfully completed this re-inspection as its subsidiary Betapharm has received a communication from the regulator that it can now start dispatching products to Europe from this plant.The status of the EU GMP non-compliance is also to be removed from its plant by the Government of Upper Bavaria.

RBL Bank falls 4% as asset quality worsens in Oct-DecRBL Bank stock fell over 4% after the company reported an increase in bad loans in Oct-Dec, and net profit missed estimates.For Q3FY18, RBL Bank’s NII improved by 45% yoy to Rs467cr against Rs322cr in Q3FY17.The NIMs for Q3FY18 stood at 3.89%, which improved by 15bps qoq. The bank’s net profit was below estimates, improvement of 27.9% yoy to Rs165cr against Rs129cr.Its GNPA for Q3FY18 stood at 1.56% against 1.44% qoq, which has increased by 12bps. NNPA for the quarter came at 0.97% against 0.78% qoq.The advances for the quarter came at Rs36, 890cr, up 38% yoy and 10% qoq.Ashok Leyland bags order for 1,200 trucks from VRL LogisticsAshok Leyland Limited (ALL), one of the largest commercial vehicle (CV) manufacturers in India, bagged an order for 1,200 trucks from VRL Logistics Limited (VRL). The order for 1,200 trucks is for two models – “AL 3123” and “AL 3723”, for 600 units each. ALL released this to the stock exchanges on January 24, 2018. The order amounts to Rs350cr. VRL is a key client for ALL since the former sources 80% of its CV requirement from the latter. ALL is the third largest manufacturer of commercial vehicles (trucks, buses, tippers, trailers and defence vehicles) in India with ~18% market share. The company is also engaged in the manufacturing and selling of engines for industrial and marine applications, spare parts and special alloy castings.Bharti Airtel gets approval for acquiring operations of Millicom in RwandaBharti Airtel Ltd (Airtel) a leading global telecommunications services provider with operations in 16 countries across Asia and Africa, announced that it has received an approval for the acquisition of Tigo Rwanda Ltd (Tigo Rwanda), a subsidiary of Millicom International Cellular S.A. (Millicom) from the Rwanda Utilities Regulatory Authority (RURA).The merged entity will have the largest customer base in Rwanda with 5.9 million subscribers. The combined networks of the two companies will serve customers with voice/ data services, global roaming and mobile banking services. It will also have Rwanda’s largest sales and distribution network.The merger will result in the only negative ebitda OpCo joining other 13 positive ebitda OpCos in Africa.Eveready to form JV with Indonesia based company for FMCG productsIndia’s leading dry cell battery maker, Eveready Industries India Limited (EIIL) will form a Joint Venture (JV) with Indonesia based Universal Wellbeing Pte. Ltd. (UW) for manufacturing, importing and marketing of Fast Moving Consumer Goods (FMCG) in India. EIIL will hold 30% stake in the soon-to-be-formed JV while UW will hold the remaining 70% stake. EIIL announced this to the stock exchanges on January 24, 2018.EIIL plans to make use of its pan-India battery distribution network to sell a bouquet of FMCG products in urban and rural areas. As per its FY17 Annual Report, EIIL has a 4,000+ distribution network and 42 distribution centers. EIIL’s products are available across more than 3.2mn outlets.Bank of Baroda may float $1bn QIP soonMedia reports suggest that Bank of Baroda is expected to float its $1bn qualified institutional placement of shares in two to three weeks. In November, The Finance Committee of the Board approved the proposal of raising additional equity capital aggregating up to Rs6, 000cr by way of a rights issue or qualified institutions placements (QIP). This move is positive for the bank, as it would provide much-needed headroom to provide for bad loans and would also help for next leg of loan growth. The stock would react positively to this news. Banks have been raising funds in the past few months to boost their capital adequacy ratio ahead of the government's recapitalization plan.MCX Tips, Intraday Stock Tips , Equity Tips, Free Trading Tips , Sebi Regsitred Advisory Company , Capitalstars Video Gallery

ONGC gains 3%, gets nod to sell stake in IOC and GAIL to fund HPCL dealOil and Natural Gas Corporation (ONGC) signed a deal to acquire 51.11% government stake in Hindustan Petroleum Corporation Limited (HPCL).As per media reports, ONGC has got approval from the government for selling its stake in IOC and GAIL to help fund its acquisition with HPCL for which it requires ~Rs36, 915cr.ONGC currently holds 13.77% stake in IOC which at current Mcap values to ~Rs 26,000cr. In GAIL, it holds ~4.86% stake valuing to ~Rs3900cr bringing the combined stake sale value to ~Rs29, 900 cr.The company is currently evaluating various options for funding its HPCL acquisition. ONGC management is considering its cash first, followed by its liquid assets, although it won’t sell its liquid assets in distress. Company also has offers over Rs50, 000cr debt at very competitive rates.IOCL gains as company's board to mull bonus share issueShares of Indian Oil Corp (IOCL) gained nearly 3% ahead of its board meeting on Jan 30, where the company will consider a bonus share issue. The stock was the best performer among Nifty 50 constituents.While a bonus share issue does not change fundamentals of a company, it increases liquidity in the stock, often pushing up share prices.Kalpataru Power zooms on growing order bookKalpataru Power Transmission Limited (KPTL) has secured new orders for construction of substations, transmission lines, and railway electrificationThe scope of the orders include the following :Design, supply, and construction of substations and associated transmission line work from APTRANSCO for Rs282cr400kV double circuit transmission line from Power Grid Company of Bangladesh and an order for 132 kV Transmission Line from Nepal Electricity Authority for ~Rs100crDesign, supply, erection, testing and commissioning of railway electrification work for Rs123cr Pipeline augmentation work in Rajasthan for Rs366cr from a private client.Torrent Pharma to consider fundraisingTorrent Pharma has indicated that its board will consider raising funds in a meeting scheduled on January 25. This fundraising could be either in form of issuance of equity shares (including convertible/non-convertible debentures/bonds) through QIP or depository receipts or by way of private placement or any other mode.Torrent Pharma has recently completed two acquisitions i.e. domestic formulations business of Unichem Laboratories acquired in December 2017 and US-based generic, OTC player Bio-Pharm Inc in January 2018. Both the acquisitions are to solidify its business in India and US respectively. Bio-Pharm, Inc has a USFDA registered manufacturing facility in the US and Torrent is planning to scale this facility up and start filling more products from there.MCX gains 2% as SBI MF buys 1.6% stake in the companyShares of Multi Commodity Exchange (MCX) rose nearly 2% today after SBI Mutual Fund bought 1.61% stake in the company through a bulk deal on the NSE on Monday. The fund house bought the shares at 840.50 rupees apiece.In a separate deal, Barron International Growth Fund sold 1.13 mn shares or 2.2% stake in the company.MCX is currently trading at Rs850.5, up by Rs9.35 or 1.11% from its previous closing of Rs841.15 on the BSE. The scrip opened at Rs857.05 and has touched a high and low of Rs858 and Rs847.75 respectively. So far 141378 (NSE+BSE) shares were traded on the counter. The current market cap of the company is Rs4289.87cr.MCX Tips, Intraday Stock Tips , Equity Tips, Free Trading Tips , Sebi Regsitred Advisory Company , Capitalstars Video Gallery

Axis Bank Q3 beats estimates; profit jumps 25% to Rs 726 cr, asset quality improvesCountry's third largest private sector lender Axis Bank's third-quarter earnings beat analyst expectations, with improvement in asset quality performance.Profit during the quarter grew by 25.3 percent year-on-year to Rs 726.4 crore despite fall in other income & operating income, driven by lower provisions and higher net interest income.Net interest income, the difference between interest earned and interest expended, grew by 9.2 percent to Rs 4,731.52 crore compared to Rs 4,333.73 crore in year-ago, with strong loan growth at 21 percent YoY.ONGC to acquire 51.11% government stake in HPCL, ONGC gains 5%Oil and Natural Gas Corporation (ONGC) signed a deal to acquire 51.11% stake in Hindustan Petroleum Corporation Limited (HPCL) for about Rs36,915cr in an all-cash deal, which would close by end of Jan 2018. The deal is proposed to buy 778845375 equity shares in HPCL at a cash purchase consideration of Rs473.97 per share which is ~13.8% premium to HPCL’s closing on Friday (BSE).The goal of this deal was to create an integrated oil major to compete with global rivals and will help the government meet annual disinvestment target. The deal is exempt from a public offer as both the entities are related parties but the acquisition involving two listed entities have been carried out on an arm’s length basis.Dr. Reddy's fined $5mn by US court over drug packagingA federal court in the US has imposed a $5mn civil penalty on a subsidiary of Dr. Reddy’s Laboratories for distributing prescription drugs in blister packs that were not child resistant. Child-resistant packaging is a critical safety measure.Dr. Reddy’s failed to ensure that children were protected from potentially harmful prescription drugs and that it failed to comply with Poison Prevention Packaging Act (PPPA) and the Consumer Product Safety Act (CPSA) according to the US Department of Justice. As per the complaint, Dr. Reddy’s distributed such prescription drugs until 2012 and also failed to notify the Consumer Product Safety Commission.Tata Motors hikes product prices by 1-3.7% in MumbaiTata Motors Ltd (TML) has increased ex-showroom prices of all its cars by 1.0-3.7% in Mumbai. This comes after the company offered a limited-period insurance and exchange offer to its customers on five models. According to Cogencis, the company has raised prices of the Tiago hatchback by 1.3-2.4% for the petrol variant, and 1.7-2.6% for the diesel variant. Prices for Tiago's petrol variant now start at Rs3, 31,646 ex-showroom Mumbai, and Rs4, 11,181 for the diesel variant.TML, on the consolidated level, derives ~80% of its revenue from a wholly owned subsidiary, JLR, which had witnessed EBITDA margin decline in FY16 and FY17 on account of weakness in volumes growth, model mix, and forex losses. Standalone business (~80% CV and PV) has experienced market share losses and is expected to turnaround the trend on account of better acceptance of SCR technology (CV) and series of new launches in PV segment (Tigor/Hexa/Tiago).Tata Steel to raise Rs12,800cr through rights issueTata Steel announced that it would be raising Rs12, 800cr via a rights issue in mid-February 2018. The rights issue would consist of two simultaneous but unlinked offers of – (1) 15.54cr fully paid up shares at Rs510 per share, and (2) 7.77cr partially paid-up shares at Rs615 per share. The company would raise up to Rs8, 000cr from the first offer and Rs4, 800cr from the second offer. The rights entitlement ratio for the fully paid up shares is 4 fully paid up shares for 25 ordinary shares held on the record date. The rights entitlement ratio for the partially paid-up shares is 2 fully paid up shares for 25 ordinary shares held on the record date.The record date for the issue is February 1, 2018. The issue would open on February 14, 2018, and close on February 28, 2018. On December 19, 2018, the Board of Directors of Tata Steel had approved the raising of capital via rights issue as well as a 5 mtpa expansion to the Kalinganagar steel plant. Currently, the Kalinganagar steel plant has a capacity of 3mtpa and had a utilization level of 100% for Q3FY18.

Saturday, 30 December 2017

Zydus receives final approval from the USFDA for Clomipramine
Hydrochloride Capsules

Zydus Pharmaceuticals (USA) Inc, a wholly owned subsidiary of
Cadila Healthcare Ltd has received the final approval from the USFDA to market
Clomipramine Hydrochloride Capsules. The drug is used to treat obsessive
compulsive disorder. This is positive news for the company, as it will
consolidate Cadila’s position in the US generic market and improve its US
Sales.

The company now has more than 175 approvals and has so far filed
over 310 ANDAs since the commencement of the filing process in FY 2003-04. The
stock is trading at 28x its FY19E P/E. We have negative outlook on the stock
due to expensive valuation and increasing competitive intensity in Lialda, post
AG launch.

The Ministry of Housing and Urban Affairs approved the
construction of an additional 5,45,090 houses under the Pradhan Mantri Awas
Yojana (Urban) scheme. The additional construction is expected to require an
investment of Rs31,003cr. Central assistance for the new construction would be
Rs8,107cr. This takes the total homes sanctioned under PMAY(U) to 36,00,819.

Andhra Pradesh and Uttar Pradesh have got the nod for constructing
1,42,447 and 1,20,645 affordable houses respectively, while Karnataka and
Madhya Pradesh have been sanctioned 1,18,646 and 1,00,341 affordable houses.

Alkem Labs gets USFDA nod for Triamcinolone Acetonide topical
cream

Alkem Labs has received USFDA nod for its abbreviated new drug
application (ANDA), Triamcinolone Acetonide topical cream. This medication is
used to treat a variety of skin conditions (e.g. eczema, dermatitis, allergies,
rash).

Alkem Labs' US business contributed 16.5% to its total sales in
Q2FY18. The company has mentioned that dermatology therapy is one of its key
area of focus. As on 30th September 2017, the company has filed a total of 95
ANDAs (including 1 new drug application (NDA)) with the USFDA and has received
43 approvals (including 5 tentative approvals and 1 NDA).

Lupin, through its filing on BSE, has informed that it has
received final approval for its Calcipotriene Topical Solution, 0.005% (Scalp
Solution) from the United States Food and Drug Administration (USFDA) to market
a generic version of Dovonex Scalp Solution, 0.005% of Leo Pharmaceutical
Products Ltd.

Calcipotriene Topical Solution, 0.005% (Scalp Solution) had annual
sales of approximately USD 5.9 million in the US (IMS MAT October 2017).

Bank of Baroda enters into SPA to buy out JV partner’s stakeBank
of Baroda (BoB) has entered into an agreement with UniCredit S.p.A. to acquire
their 51% stake in Baroda Pioneer Asset Management Company, as per the BSE
filing.

Pursuant to the share purchase agreement (SPA), the Bank will be
purchasing from its joint venture partner, UniCredit, their entire equity stake
of 51% in the Baroda Pioneer AMC and the Trustee company. Post the acquisition,
BoB will become the sole shareholder of the AMC and the Trustee company and
sole sponsor of the Baroda Pioneer Mutual Fund. The agreement is subject to
approval from regulatory authorities.

The move comes on the back of the acquisition of Pioneer
Investments by Amundi earlier this year. Amundi already has a presence in an
Indian AMC. The management indicated that they see great opportunity in
creating AMC business given the rapid growth in the mutual fund industry. It
aims at becoming a meaningful player in the asset and wealth management space.